Venture Capital - Malta | Statista Market Forecast

Malta is projected to reach a Total Capital Raised of US$37.00m in the Venture Capital market market by 2024.
The Early Stage market is expected to dominate the market in Malta, with a projected market volume of US$21.92m in 2024.
In global comparison, the United States will lead in Capital Raised, with US$136.6bn in 2024.
Malta's growing tech ecosystem is attracting venture capital, positioning the country as a hub for innovative startups in the capital raising market.

Definition:

Venture Capital is a form of private equity funding that is offered to startups and emerging companies. Venture Capitalists invest not only money but also their networks and technical and managerial expertise, in exchange for a specified proportion of equity ownership.

Structure:

The market consists of three segments:
- The Seed Stage market refers to capital financing at the earliest phase of a startup's development.
- The Early Stage market refers to capital financing at the next stage after seed stage.
- The Later Stage market refers to capital financing at the expansion stage of businesses.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Key players in this market are companies such as Sequoia Capital and Accel.

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The Venture Capital market in Malta has been experiencing significant growth and development in recent years.

Customer preferences: Investors in the Venture Capital market in Malta are increasingly seeking out opportunities in innovative and high-growth sectors such as technology, fintech, and healthcare. This is driven by the potential for high returns on investment and the desire to support and participate in the growth of these industries. Additionally, investors are attracted to companies that have a strong management team and a clear growth strategy.

Trends in the market: One of the key trends in the Venture Capital market in Malta is the increasing number of startups and entrepreneurial activity. This is fueled by a supportive business environment, government initiatives to promote entrepreneurship, and the availability of funding through venture capital firms. As a result, there is a growing ecosystem of startups and a vibrant entrepreneurial culture in Malta. Another trend in the market is the rise of cross-border investments. Venture capital firms in Malta are increasingly looking beyond the local market and investing in startups and businesses in other countries. This is driven by the desire to diversify their portfolios and tap into emerging markets with high growth potential.

Local special circumstances: Malta's strategic location in the Mediterranean and its membership in the European Union make it an attractive destination for investors. The country offers a favorable tax regime, a stable political and economic environment, and a well-developed legal and regulatory framework. These factors contribute to the growth of the Venture Capital market in Malta by attracting both local and international investors.

Underlying macroeconomic factors: The growth of the Venture Capital market in Malta is also influenced by underlying macroeconomic factors. Malta has experienced strong economic growth in recent years, supported by sectors such as tourism, financial services, and gaming. This has created a favorable investment climate and increased the availability of capital for venture capital firms. Additionally, the government's focus on promoting innovation and entrepreneurship through initiatives such as tax incentives and funding programs has further stimulated the Venture Capital market in Malta.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.